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Financial Intelligence for Supply Chain Managers: Understand the Link between Operations and Corporate Financial Performance by Steven M. Leon

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7. Project Management

Companies undertake projects for several reasons. Projects can improve the company’s value, increase shareholder wealth, and help it remain competitive in the market place. Projects contribute to these goals by increasing cash inflows and minimizing cash outflows. Managing the projects is a critical part of the company’s success. If a company routinely chooses unsuitable projects or sees projects fail often, the company’s financial performance and reputation can be severely damaged. Therefore, successful project selection, implementation, and completion are of the utmost importance.

Projects vary greatly in scale, scope, and area of emphasis, even though all are designed to improve the company’s operation in some way. Implementation ...

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